Kakao shares 3plunge into the ten-thousand-won range, brokerages slash target prices
Kakao shares at one point plunged from the ten-thousand-won range to the ten-thousand-won range, and 17from the ten-thousand-won range to the ten-thousand-won range, 3and 7brokerages successively lowered their target prices. 2Although quarterly results held up, the lack of clear growth drivers beyond Talk Biz advertising and commerce, along with the absence of a visible monetization model for AI, has been cited as the background to the target-price cuts.
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![Kakao shares 3(/blog-images/gen-209f3433-0ee3-4875-b362-c7fa253640bb.png)
With Kakao shares falling from the ten-thousand-won range to the ten-thousand-won range, 17from the ten-thousand-won range to the ten-thousand-won range, 3brokerages successively lowered their target prices. This trend is a case in which a short-term sharp drop in the share price coincided with target-price adjustments.7:
Brokerages commonly cited a lack of growth drivers as the reason for lowering their target prices. The same reports pointed out that the revenue model for the AI business is not yet visible.
Among the company’s core businesses, the Talk Biz advertising and commerce divisions were reportedly showing relatively solid performance trends. The reports included statements that these divisions are serving as an immediate earnings base.
Meanwhile, a decline in KakaoTalk’s user count was observed, and this was cited as a potential burden on future advertising profitability. Some reports linked deteriorating user metrics and the absence of AI revenue as the background for lowering their target prices.
It has only been disclosed that securities firms adjusted their target prices in succession to reflect this structural uncertainty. The company has not provided any further explanation or announced any new figures.
These reports summarize securities-industry reports released and market reactions. Performance items and user metrics that serve as criteria for investment decisions, along with whether AI-related revenue is disclosed, remain the next points to monitor.7Performance items and user metrics that serve as criteria for investment decisions, along with whether AI-related revenue is disclosed, remain the next points to monitor.